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Does Collateralization Affect the Premium Received for a Covered Call?

No, premium is determined by market factors (strike, time, volatility), not the writer's collateral status.
Greeks.Live31.10.25

Does Collateralization Affect the Premium Received for a Covered Call?

No, the collateralization status (covered vs. naked) of the writer does not directly affect the premium received. The premium is determined by market factors such as the strike price, time to expiration, underlying price, and implied volatility.

Collateralization only affects the writer's risk profile and the margin required by the exchange.

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